Posted on 02/12/2011 7:27:23 AM PST by BenLurkin
For the people, by the people....
1. Ending all benefits for elected and appointed officials. When you lose at the ballot, or get termed out, you were fired, not retired.
2. A mandated change to only provide hospital coverage, with employees permitted to pay the extra thousands per month to bring the coverage back up to the gold plated policies presently enjoyed by government employees.
3. A mandated reduction in existing benefits to bring them in line with federal Social Security benefits.
The state of California is a sovereign, it requires no permission from anyone to make these changes, and no court can impose these benefits nor require these benefits be continued, no matter what previous or current agreements are in place. Courts can issue whatever they choose to demand, but lack any ability to enforce these rulings against a sovereign power.
Mind, this does nothing about the six weeks a year of vacation benefits, the personal vacation day, the two weeks per year of sick pay, the 13 paid holidays, etc, nor the high wages paid to state employees. But just those three changes will reduce the state budget by more than 20 billion dollars a year.
Unsustainable the new name for California.
The big issue is that California cannot pay *existing* pensions, much less future ones. Though nobody in California is saying that. But when they have no other choice, the issue will be how much to reduce pensions.
Their best option there is to create a pension cap for everyone in the State getting a State pension. And that means a cap for *all* State benefits, not limited to a pension, because there are other benefits, such as disability, that are given on top of pensions.
They might be able to get away with it if there are no waivers of any kind, for anyone, including legislators or State executives.
If that is still not enough, then they will have to go for means testing, likely my making benefits for the wealthy subject to a State tax as high as 50%.
The big question is will the federal government let them do any of this.
“The big issue is that California cannot pay *existing* pensions, much less future ones. Though nobody in California is saying that. But when they have no other choice, the issue will be how much to reduce pensions.”
Exactly - they’re about 20 or 30 years late with this one.
Simple as in KISS
Profound as in logical
Amen as is "let's do it".
This exactly why NOTHING will be done. The robbers are running the bank in CA.
HUH? Where the heck are you getting that? They have over $200 billion in assets.
Though nobody in California is saying that.
Perhaps because it isn't true?
WHO has over $200 billion in assets?
Anyone with half a brain is going to figure out in less than 5 years that they're paying for The Holy Trinity (CA teachers, police & firefighters) to live it up on the backs of the CA taxslaves. Then, the smart ones are gonna get out of Dodge...
Pensions are the side effect, and a distraction. What needs to be cut are programs. Democrats will turn their union sheep into slaves to save their precious programs.
Liberalism: Utopia is just one program away.
“Then, the smart ones are gonna get out of Dodge...”
The smart ones are long gone. They, like me, moved to states like Texas and are doing just fine. We thank California for the wage rates - and Texas for giving us a place to raise a family.
CalPERS
Bust the public service unions!
CA state prison guards make in excess of 92K, almost 20K more than federal prison guards doing the exact same job.....
How many retirees is CalPERs currently supporting?
Nope. There's a simpler solution. A win-win solution.
1) Build our prisons in southern Mexico. Without union and EPA interference, they'll cost 10% of California prices. Without US court interference they'll be 80% cheaper to operate.
2) Employ local labor to guard our convicts at prevailing California minimum wage. That's a kings ransom in Mexico for people without jobs.
3) Pay the Mexican government a flat fee per day for housing. That will guarantee minimal health care and nutrition.
4) Allow the Mexican government to charge for visitation. A cottage industry to aid the locals.
If California's correctional officers want to move to southern Mexico for employment, pay their bus fees.
http://www.californiapensionreform.com/database.asp
Let's do the math!: 9111 x 100,000 = $911,100,000 ~= $1 billion of your $200 billion "assets".
The top ten from the CalPERS list are actually averaging $287,000 a year in pension.
Actually, many of those listed aren’t in CalPERS, but CalSTRS.
CalSTRS has another $146 billion in assets.
Regardless, the original poster didn’t answer my initial question as to where on earth he determined that “California cannot pay *existing* pensions, much less future ones.”
It is not true and posting a bunch of alarming statements as fact does little for getting at true reform of the pension plans.
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